Jump to content

Selling an investment property
what do I need to know?

  • Please log in to reply
2 replies to this topic

#1 PureBliss

Posted 05 December 2012 - 07:16 PM

We are considering selling our investment property, and as a first timer I am a bit green.

I will talk to my accountant naturally, but wanted some quick answers first.

Basically I want to know all of the expenses we will be up for as a result of selling, eg.
Agents fees (been quoted 2.2% inc GST, does that sound reasonable?)
Advertising (been quoted $330 for package that is supposedly worth $1600)
Captial Gains Tax

Do you have to pay for conveyancing like when you purchase a property? (assume not, just checking)

Will there be bank fees for paying out the mortgage on the property?

Will there be other tax implications (eg. my income tax for next year?)

Finally, thecurrent  tenant has made us an offer (bit low, but not far off the market), so should we even be considering selling privately? Arggh the decisions!

Thanks in advance

#2 rob6712col

Posted 06 December 2012 - 01:18 PM

To sell you will have the following fees:
- Real estate agent fees
- Advertising fees for the agent
- capital gains tax payable for the following financial year (so check what that tax will be from your accountant and make sure you put that money away from the sale as it is not payable for up to 12 months later)
- solicitor fees do apply to attend the settlement on your behalf
- loan discharge fees will apply. Depending what type of loan you have will depend what the fee will be (hoping you don't have a fixed rate loan)
- government fees to discharge the mortgage on the property

If the current tenant wants to buy it then you can save the real estate agents costs and advertising costs so you can sell it a bit cheaper and still come out with the same amount of money. For example, if you sell for $400,000 with a real estate agent their fee would be approx $11,000 plus any advertising. If you sell it to the tennant you could sell it for $389,000 and still have the same amount in your pocket after the sale.  Also this gives you a quick sale.

#3 PrincessPeach

Posted 06 December 2012 - 01:37 PM

To roughly estimate the capital gain you need to include in your tax reutnrs is the following:

Sale price - purchase price - any agets fees/legal fees & anything not claimed as a deduction previously.

If the property has been owned for longer than 12 months, 50% of that amount is included as your capital gain.

1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

  • ek-winter-sewing-1thumb

    Winter stitch and knit craft for kids

    With the cooler weather upon us, here is a collection of easy winter inspired cut, sew, knit crafts that you can do with the kids. There are glove monsters, no-sew scarfs, and sock snowmen. Winter is a great time to get crafting.

  • ek-mentone-girls-thumb-purple

    All about girls

    Advice to help you navigate some of the most difficult parenting issues. Including how to talk to your child about body image, set screen time limits and help them build resilience

  • ek-sportbooks-athumb

    Best books for sporty kids

    Need some inspiration for your sporty kid 's downtime? Here is a handful of good reads for young sporting enthusiasts.

  • 320x214 GF survey

    Tell us what you think

    to WIN 1 of 2 $500 Coles/Myer gift cards

  • ek-pullapart-zthumb

    Amazing pull-apart bread recipes

    From savoury to sweet, here we have gathered a range of amazing pull-apart bread recipes for you to make - in the mean time try to avoid licking the screen!

  • Things only kids growing up in the 90s would understand

    Did you grow up in the 90s? Here are 50 classic memories from your childhood that will take you back.

  • harry320

    10 actors who were almost cast in the Harry Potter series

    Casting for the Harry Potter series couldn't have been an easy job. While we think everything turned out the way it should, here's ten actors that almost made it into the movies.

  • wonka320

    When they were famous

    Ever wonder what happened to the child stars that entertained us all those years ago? From Mary Poppins to Jerry Maguire, take a look at when they were famous and learn what they're doing now.

  • ek-fidgettoys-1athubm

    Fidgets or Fidget Toys for ASD, ADHD and Sensory Disorders

    Fidgets and other sensory hand held toys are a great way to encourage attention and concentration. We all love to rock on a chair and click our pens or chew gum to stay alert and attentive, so why not let children have functional and socially acceptable fidgets too, to help them learn and keep them focused on learning.

  • ek-80sboys-1thumb3

    Boys growing up in the 80s

    Flashback time! Here are a handful of totally retro memories for boys (and a few for girls) who grew up in the 1980's in Australia.

Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.